Scient Smart Beta PMS
Listed equity strategy
Scient Smart Beta PMS is a quant-driven, large and midcap equity strategy targeting excess annualized returns of 2%-4% over a benchmark (BSE Top 200). The strategy aims to lower risk and volatility for a superior risk-adjusted return.
Advisory strategy
The equity advisory coverage focuses on the BSE 200 universe of stocks with the objective of leveraging Scient’s proprietary ‘Quantamental’ approach (Quant + Fundamental) to provide views on the investor’s existing stock portfolio
We identify sub-optimal allocations in the portfolio and provide a smooth glide path to transition the portfolio to a more appropriate set of stocks as per our view over 2-4 quarters
Use a factor-based approach, using 4-14 factors across Growth, Value, and Momentum parameters that are most relevant based on the current market cycle/p>
The model tracks historical data for the chosen factors for the past 8 quarters and takes a view of 6 months to 2 years
The approach aims to generate an excess return of 2%-4% over the benchmark
Investment Strategy
Aims at consistent alpha generation by providing excess returns over the benchmark
Increase diversification and reduce risk by taking exposure to various factors which have low correlation
The selection and weightage of individual stocks in the core portfolio are based on factors like Value, Growth, and Momentum
The fund aims to generate an excess return of 2%-4% over the benchmark with lower volatility
How We Add Value
Use of proprietary Artificial Intelligence (AI) quant model to study various factors and forecast different variables, running multiple simulations to arrive at the target portfolio
Using the model to select factors and factor weights depending on the macro trends, market cycle, and sector rotation – typically 4-14 factors are statistically relevant
Optimal diversification through an 18 to 35 stock portfolio of high-conviction ideas
Lower cost than traditional active management, without sacrificing performance
Suitability
Investors with a conservative approach toward equity investing
Investors looking to invest for a horizon of over three years
Investors looking to maximize their return with lower volatility in the portfolio
Investors looking to outperform the benchmark and generate alpha by capturing the current trend in a particular sector/stock
Conservative investors with low-risk appetite
Investors looking to earn alpha over traditional debt with lower risk
Investors looking to invest for a period of 3 years or less
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